At a press conferenceon 18 April 2017, Prime Minister Malcolm Turnbull announced major reforms to Australia’s skilled migration programme. Reacting to the global shift towards temporary, rather than permanent, migration as well as the social and economic impact of that phenomenon, the government maintains that these reforms are in the “national interest” and will give “priority to Australian workers for Australian jobs”.

The reforms will be implemented between 19 April 2017 and March 2018. Australia’s employer-sponsored migration programmes will become increasingly difficult to access as the reforms are implemented.

The subclass 457 visa programme will be phased out and replaced with a new Temporary Skilled Shortage visa programme in March 2018. Changes will also be made to the permanent employer sponsored visa programmes during the reform implementation period. From a compliance perspective, before the end of 2017, DIBP will start:

collecting Tax File Numbers for 457 visa holders (and other employer sponsored migrants), and data will be matched with the Australian Tax Office’s records to ensure that visa holders are not paid less than their nominated salary

publishing on its website details relating to sponsors sanctioned for failing to meet various statutory obligations, including their migration law sponsorship obligations.

Sudden changes to immigration law can be confusing and clients often require help in order to navigate the new maze. Based upon information available as at 19 April 2017, the table below summarises the key changes to Australia’s employer-sponsored visa programmes that are scheduled to occur between 19 April 2017 and March 2018. The table is designed to help visa applicants and their employers better understand the changes, when they will take effect and what possible impact they may have upon nomination and visa eligibility.

SUBCLASS 457 VISA PROGRAMME – TEMPORARY RESIDENCE

Changes affecting undecided applications that were lodged on or before 18 April 2017

Undecided nomination and visa applications will be refused unless the nominated occupation:

is listed on the:

Medium and Long-term Strategic Skills List (MLTSSL), which currently has 184 occupations listed; or

For further information about the list of occupations and whether any caveats* apply to a specific occupation, see the DIBP website

For 457 visa applicants whose applications are approved, their visa will be granted for a maximum period of up to:

2 years if their occupation is listed on the STSOL; or

4 years if their occupation is listed on the MLTSSL.

According to DIBP, clients who lodged nomination and visa applications prior to the Prime Minister’s announcement and their nominated occupations are no longer available for the purposes of the 457 visa programme will be given the opportunity to withdraw their applications and provided with a refund of the DIBP application fees and charges.

Changes affecting applications lodged on or after 19 April 2017

Nomination and visa applications will be refused unless the nominated occupation:

is listed on the:

MLTSSL; or

STSOL

meets any caveat* requirements which apply to that occupation when used in the 457 visa programme, such as:

The 457 visa programme will be abolished in March 2018 and replaced with a new Temporary Skilled Shortage (TSS) visa programme. The TSS visa programme will have 2 streams: the Short-Term stream and the Medium-Term stream.

Eligibility criteria for all TSS applications:

Work experience: at least 2 years’ relevant work experience

Labour market testing (LMT): LMT will be mandatory, unless an international obligation applies

* Nomos has concerns in relation to the lawfulness of the caveat requirements as they have been specified in the legislative instrument which prescribes these reforms. As at 19 April 2017, there are 59 occupations which are affected by caveat requirements.

* UPDATE 7 June 2017: Nomos’ concerns in relation to the lawfulness of the new caveat system were published in The Australian Financial Review – Migration Lawyers say 457 visa changes “unlawful”. Click here to read the article.

If you have lodged, or are thinking about lodging, a Subclass 457, 186 or 187 nomination or visa application before March 2018, please contact Nomos for strategic advice in relation to application eligibility (including how to deal with the new caveat requirements if they affect you) and whether, and if so how and when, an alternate pathway should be pursued.

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